The US Federal Energy Regulatory Commission (FERC) has granted approval for the cross-border Saguaro Connector Pipeline, reported Reuters.

The proposed pipeline will have the capacity to transport approximately 2.8bcf/d of natural gas from Texas to Mexico Pacific LNG’s proposed $15bn Saguaro LNG export facility on Mexico’s west coast.

Once operational, this plant will export super-chilled fuel derived from US natural gas sources.

Mexico Pacific LNG is yet to give the financial go-ahead for the construction of the Saguaro Energía plant, reported the news agency.

This facility is expected to have a capacity of 15 million tonnes per annum.

The decision by FERC comes amidst a pause in export permit reviews by the US DOE, as the Biden administration has called for a more comprehensive assessment of the plants’ climate, consumer and community impacts.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The proposed pipeline faced opposition from Texas-based groups including environmental organisation the Sierra Club.

These groups have urged the FERC to take into account the potential greenhouse gas emissions and the risk of methane leaks associated with the project.

Recently, the US Government temporarily paused approvals for liquefied natural gas (LNG) exports to countries with which it does not have free trade agreements (FTA). 

The US, a key player in LNG exports, has an operating capacity of 14bcf/d and has approved a total of 48bcf/d to date. 

As per the DOE, an additional 12bcf/d of US export capacity is authorised and under construction, which is expected to nearly double exports within this decade.